Making Tax Digital (MTD)
MTD was first mentioned by HM Revenue & Customs (HMRC) back in 2015 and the implementation plans are rapidly gathering pace.
The aim is to modernise the UK tax system; replacing annual tax returns with online digital accounts and quarterly reporting requirements for millions of individuals and businesses.
This change is proposed to be fully operational by 2020, however feedback from professional bodies raised concerns regarding the timescale for different groups of users.
We are covering the issue of MTD in our upcoming newsletter, which will be hitting the shelves early April 2017, but in the meantime the Chancellor announced today that unincorporated businesses and landlords with turnover below the VAT threshold will have an extra year, until April 2019, before they have to comply with the quarterly reporting requirements.
This is excellent news as the delay will also provide an opportunity for HMRC to ensure that the software systems are working properly before rolling the project out to everybody!
The Government and HMRC still however have much work to do behind the scenes, and we will be providing regular updates on this going forward, but for now please do not panic. Although the changes will be a huge shift in the way that most people manage their affairs we will be by your side to guide you through.
Education featured heavily in the Chancellor’s Budget today with the following announcements:
- Funding of £320 million for additional free schools, including new specialist maths schools.
- Increased investment of £216 million in existing schools for maintenance and refurbishment.
- A new T-level for technical qualifications for students aged 16-19 to increase the esteem of such qualifications is to be introduced from Autumn 2019. There will be 15 different routes to the new qualifications which will include subjects such as construction, technology and agriculture.
- The number of hours of technical training for students aged 16-19 will be increased by 50% in order to prepare them for work when qualified, which will include industry placements.
- Provision of maintenance loans for part time undergraduates and doctoral students to support higher level study.
- £300 million will be made available to support 1,000 new PhD and fellowship places to enhance science and innovation.
The Government has pledged further money to improve the infrastructure, including transport and technology, as follows:
- To improve ‘pinchpoints’ on the national road network, the Government has pledged £90 million for the north of England and £23 million for the Midlands.
- £200 million will be available to the private sector for investment in local fibre broadband networks.
- £16 million will be available for the development of 5G mobile technology.
- £270 million will be made available to keep the UK at the forefront of technologies by way of an Industrial Strategy Challenge Fund, which will support research and innovation in universities and businesses in areas such as robotics, artificial intelligence and electric vehicles.
- £690 million will be given to local authorities for local transport projects across England to deal with urban congestion.
For any queries relating to the Spring Budget contact our team.